Proxy

Power of attorney allows you to give another person the authority to act on your behalf. When you have given a power of attorney, it does not mean that you are no longer authorised yourself. A proxy will have to account for what he does as proxy. If he does not do so in the way you should have expected him to, the authorised representative will be liable for damages.

When are powers of attorney used?

Powers of attorney can be given orally or in writing. For some legal acts, the law prescribes that the power of attorney can only be given in writing. For establishing mortgage">a mortgage, power of attorney can only be given by deed-of-split-building">notarial deed. If the power of attorney is to be used in another country, the power of attorney must also comply with the requirements in that country. The advantage of a notarial deed is that the person who has to rely on the power of attorney has the assurance that the power of attorney was really given by the principal.

Powers of attorney can be revocable and irrevocable. When the proxy has an interest in the legal act that can be performed with the power of attorney, in many cases it requires an irrevocable power of attorney. Irrevocable powers of attorney do not end even by death.

Different types of powers of attorney are explained in more detail below.

General power of attorney

This power of attorney allows the trustee to perform all acts in any area of law. For example, unless otherwise stipulated in the power of attorney, he can dispose of bank accounts, sell property, make donations and take out loans. If the power of attorney is recorded in a notarial deed, mortgages can also be established.

Special power of attorney

This power of attorney applies to a specific purpose or action. For example, a power of attorney to the staff of a notary's office to deliver a certain house, or a power of attorney to specifically look after your medical interests.

Banking power of attorney

Instead of granting a power of attorney, people still sometimes choose to make an account a "and/or account", in order to empower someone else. In practice, this regularly causes problems because it suggests that someone else is also entitled to the account balance. With a banking power of attorney, you authorise someone to manage your current or savings account. This can be done with a form at your bank. The bank does not have the task of supervising. So there is a risk that the authorised person uses your bank account for other purposes than you intended. Incidentally, this plays out in all situations that a power of attorney is given.

Power of attorney to prevent administration or guardianship

Those who enjoy good health mentally and physically can generally look after their interests well. When the physical or mental condition deteriorates, it is nice that affairs can be looked after by someone in whom you have full confidence. The first designated person is generally the husband or wife. This is why many people who are married give a general power of attorney to their spouse. Such powers of attorney can be given unclaused; however, it is also possible to stipulate in the deed that the power of attorney can only be used from the moment a doctor has made a written declaration that you yourself are no longer able to properly represent your interests and declare your will. It is also possible to give power of attorney to the children, preferably to at least two children together, or to third parties. Again, this may include a restrictive provision regarding the medical declaration.

By using such a power of attorney, the -sometimes very drastic on a personal level- procedure of a guardianship order or receivership is avoided. Moreover, with a power of attorney, there can be cost savings and you do not have to go to court (which is often a lengthy procedure).

Receive professional advice

For more information on granting powers of attorney and the powers of a trustee over economic property, please contact our notary office. You can reach us by calling +31 (0)10 285 88 88. Our enthusiastic staff will be happy to advise you.